HF 2632

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/27/2023 04:24pm

A bill for an act
relating to housing; establishing stable housing organization relief program;
appropriating money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin STABLE HOUSING ORGANIZATION RELIEF PROGRAM.
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new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of the Minnesota Housing Finance
Agency must establish and administer a grant program in accordance with this section to
support nonprofits that are experiencing significant detrimental financial impacts due to
recent economic and social conditions.
new text end

new text begin Subd. 2. new text end

new text begin Eligible organizations. new text end

new text begin To be eligible for a grant under this section an
organization must:
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new text begin (1) be a nonprofit organization that is tax exempt under section 501(c)(3) of the Internal
Revenue Code that has been doing business in the state for at least ten years as demonstrated
by registration or filing of organizational documents with the secretary of state;
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new text begin (2) have its primary operations located in the state;
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new text begin (3) be experiencing significant detrimental financial impact due to recent economic and
social conditions. This includes but is not limited to decreased operating revenue due to
loss of rental income; increased operating expenses due to inflation in utility expenses;
insurance; property taxes; property maintenance and repairs, including deferred expenses;
increased staffing and security due to increased tenant mental health needs and other distress
which have caused or is causing, singly or in combination, operating deficits in rental housing
developments; increased subsidy to developments from charitable contributions or other
organizational resources; reductions in organizational net assets; deferred maintenance and
repairs, the combination of which threatens the continued ability to provide decent, safe,
affordable housing to low-income populations; and the ability to develop and operate
additional affordable housing;
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new text begin (4) have supportive services options available for the individuals and families residing
in the rental housing it provides to low-income populations; and
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new text begin (5) provide, as of December 31, 2022, housing units in the state that it owns or controls
consisting of any of the following:
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new text begin (i) at least 1,000 units of naturally occurring affordable housing. For purposes of this
item, "naturally occurring affordable housing" means multiunit rental housing developments
that have not received financing from the federal low-income housing tax credit program
for which the majority of the units have agreements in place to be affordable to individuals
or families with incomes at or below 60 percent of the area median income as determined
by the United States Department of Housing and Urban Development, adjusted for family
size, and that do not receive project- or other place-based rental subsidies from the federal
government;
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new text begin (ii) rental housing units, not including naturally occurring affordable housing, of which
50 percent of the total number of units are rented to individuals or families whose annual
incomes, according to the most recent income certification as of December 31, 2022, are
at or below 30 percent of the area median income as determined by the United States
Department of Housing and Urban Development, adjusted for family size; or
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new text begin (iii) at least 250 units of permanent supportive housing, as defined in Minnesota Statutes,
section 462A.36, subdivision 1, paragraph (e).
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new text begin Subd. 3. new text end

new text begin Grant program. new text end

new text begin (a) The commissioner must provide grants to eligible
organizations as provided in this subdivision.
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new text begin (b) An organization that seeks to obtain a grant must apply to the commissioner by July
28, 2023, and certify:
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new text begin (1) that it is eligible for a grant under subdivision 2;
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new text begin (2) the total number of rental housing units it owns or controls in the state, including
but not limited to the rental housing units it provides under subdivision 2, clause (5); and
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new text begin (3) information on significant detrimental financial impacts due to recent economic and
social conditions.
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new text begin (c) The commissioner must disburse grants to eligible organizations no later than
September 30, 2023. Eligible organizations that receive grants must use grant funds to
mitigate significant detrimental financial impacts due to recent economic and social
conditions.
new text end

new text begin (d) The amount of a grant to an eligible organization equals:
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new text begin (1) the percentage of the total number of units an eligible organization certifies that it
owns or controls in the state of the total number of units certified by all eligible organizations;
multiplied by
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new text begin (2) the total amount of the appropriation for this grant program under section 2.
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new text begin (e) No grant to an eligible organization may exceed $4,000 per certified unit. The per-unit
amount of the grant for each eligible organization must be calculated based on the total
number of units each eligible organization owns or controls in the state and is not limited
to the number of units that qualify it as an eligible organization under subdivision 2, clause
(5).
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new text begin Subd. 4. new text end

new text begin Reporting and financial audit. new text end

new text begin Each recipient of grant funds must submit a
report to the commissioner by September 30, 2024, on the use of those funds in a form
determined by the commissioner.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 2. new text begin APPROPRIATION.
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new text begin $120,000,000 in fiscal year 2023 is appropriated from the general fund to the
commissioner of the Minnesota Housing Finance Agency for the stable housing organization
relief grant program in section 1. The Minnesota Housing Finance Agency may use up to
$....... for administrative costs. This is a onetime appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end